Mulberry’s sales slump as Koreans cancel orders
31/01/2014
It also said the Korean market, where wholesale ordered were cancelled, was “significantly more challenging than anticipated”.
By comparison, rival Burberry reported a healthy festive season.
The cancellations from Korea means wholesale sales for the year ending 31 March 2014 will be about 10% lower than last year.
“In combination with the costs associated with the store opening programme undertaken over the last two years, the lower-than-anticipated level of sales is expected to result in profit before tax for the year ending 31 March 2014 being substantially below current market expectations,” said the company in a statement.
In December, the company cited rising leather prices and investment in a new factory for declining profits.
Mulberry CEO Bruno Guillon said despite tough conditions, “the company continues to be cash generative and to invest in the ongoing process of transforming Mulberry from a domestic to a global luxury brand, the progress of which is demonstrated by the continued growth in international retail sales".
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